To Expand our Business or Not....

[jpratt]

Last year the wife and I opened a new Christian Music and Bookstore last year. We know that business usually don't make a profit for the first few years and we are okay with this. Yesterday we found out that the business next is closing up, if we leased their space next to ours and removed the wall, their space would double our floor space to almost 2,000 square feet. I am only putting between 200-800 a month into the business right now. Looks like our rent would would go up about 800-900 a month for the additional space. That would really push the budget we are on but could be covered with a little overtime on my side. Current floor space is cramped and her office is about the size of a broom closet. Next door is an insurance agent so that means office's and a little more retail floor space. It would also open up areas for specialties like gift wrapping and such. We are stressed over the possibility of upgraded. I am waiting on the owner to call me back and let me know the price of both buildings together. You have to spend money before you can make the money.

 

[1 in 2000]

"You have to spend money before you can make the money."

Expanding on services and display area for more merchandise would make more money. The rest would just be more overhead, use your space wisely.

 

[salvageV6]

Having a nice office and atmosphere at work can be a nice thing as a business owner.

Making more money is usually more important however.

So is having food money when you get home.

I agree with the above comment if it isn't going to directly impact sales and bring in more money don't do it.

 

[rmar]

You only expand when you do not have any where for people to stand or places to put stuff and they refuse to stand outside. And then you tell them you are considering it........:biggrin: You can thank me later.:wink:


Another thought........Being real estate and it's location to you for possible future needs. Buy it and rent/ lease to some other industry until your needs change.

 

[Red C5]

It sounds like it's just too early. Some good advice above.

Peter

 

[jpratt]

You only expand when you do not have any where for people to stand or places to put stuff and they refuse to stand outside. And then you tell them you are considering it........:biggrin: You can thank me later.:wink:


Another thought........Being real estate and it's location to you for possible future needs. Buy it and rent/ lease to some other industry until your needs change.

There are usually not that many people in the store at once but the shelves are very full and displays are pretty crowded. I am pretty sure we will rent the building out, no chance to buy it as the whole strip mall we are in is owned by a single real-estate tycoon kind of guy.

 

[Gary Wells]

I would think that on today's market with all of the turmoil going on, maximizing your profit by minimizing your outgoing costs would pay off handsomely down the road. The economy's still subject to pitfalls.

 

[Pronto]

Let the space sit unleased for a half a year then offer to rent it for less than the asking price since you by then will be a rentor with a good standing. Renting the whole space to one reliable rentor might appeal to the building owner.

 

[Dennis Kirban]

All good advice......above

One topic not touched on is the fact with e books the printed book sales is dwindling (Borders for example is gone)....I could see locking in the additional space if you plan to expand into say another related avenue of retail.....

I give you credit as you are in a tough market. My Dad back in the day wrote over 50 books based on the end times. If you ever want to expand into some of the books he wrote back in the 1970s I can supply you with some. Mostly based on the book of Revelation. You can research his name Salem Kirban....several where half million sellers back in the day one book was entitled 666.

denniskirban@yahoo.com

His writing was a lot deeper than mine!

 

[Red C5]

Good point, Dennis.

 

[GNTIM]

Just from what I've heard so far, I would not do it right now, especially if there is no profit at this time. Maybe invest your time and $ in good advertising or networking.